Accuride plans 392 job cuts

Layoffs follow resignation of trucking parts firm's president.

Layoffs follow resignation of trucking parts firm's president.

September 24, 2008

EVANSVILLE, Ind. (AP) -- Accuride Corp., a maker of commercial vehicle wheels and other trucking industry products, announced Tuesday the resignation of its CEO and plans to cut nearly 400 jobs -- 11 percent of its work force -- in a company shake-up. Accuride said John Murphy, president, CEO and director, had resigned and will be replaced by William M. Lasky, who will serve as interim president and CEO of the company. The Evansville, Ind.-based company has been struggling along with other companies that serve the trucking industry, which has been hit hard by high fuel prices. Aside from cutting 392 positions, Accuride said it will also take a charge of about $14.3 million in the third quarter. Company officials said the moves will save the company $6 million in 2008 and generate annual savings of about $27.5 million thereafter. Accuride said orders for large truck and trailer components have struggled and that the "freight environment remains weak and trucker profitability remains low following record-high fuel prices," it said. Last month, the company reported that its second-quarter net profits plunged 31 percent while sales were flat. For the first six months of the year, Accuride reported a net loss of nearly $8.4 million, down from profits of $3 million during the first half of 2007.